Payoneer sees 2024 revenue growth below mid-teens medium-term target

Payoneer CFO Bea Ordonez said in a William Blair Fireside Chat, according to a transcript of the event: “Look, as we outlined at Investor Day over the medium term, which we define then as the next three years, we expect revenue growth in the mid-teens from, as we’ve talked about, accelerating ICPs acquisition, especially in that NK plus cohort from improving ARPU dynamics within our business, from accelerating growth in our B2B and in our direct to consumer business as well as from M&A, where we can use M&A and inorganic opportunities to extend our financial stack and our geographic penetration. And we continue to have confidence in the strategy we laid out and in those targets. At the same time, we see some cyclical headwinds as interest rates again begin to decline to more normalized levels. And obviously, the expectations as to the speed of those declines have fluctuated materially in recent months, as we all know. So as we think about those medium term targets, we don’t expect a flat 15% revenue growth rate for each of the next three years. Rather, what we expect for 2024 total revenue growth to be in the lower than that mid-teens target with acceleration throughout the year throughout 2024 as we lap the impact of headwinds related to certain non-volume fees, which happens by the end of Q2 of next year. As we outlined, we also expect growth over the next three years to accelerate as we execute on our strategy, increasing our ICPs and driving ARPU and capturing market share in again those higher yielding and faster growing B2B and direct-to-consumer segments… Overall, we would expect aggregate volume growth in 2024 to be in the low double digit range with faster growth outside of China and accelerating volume growth in our B2B segment, building on those strong exit dynamics that we highlighted at Q3 and continued growth in our Checkout product… So really, again, to summarize, in terms of those nearterm sort of targets, we’re looking for low double, double digit normalized growth in 2024 with accelerating revenue growth throughout 2024 and exiting at a low-to mid teens growth rate in Q4 of 2024. As we continue to penetrate the very large B2B and direct-to-consumer segments.”